Most organizations know that form 990 is a required document from all nonprofits. But few really understand what an annual report is, and how the two are related. And how great design plays a role in the success of an annual report.
An annual report is optional for nonprofits to produce, unlike a form 990. An annual report includes all the data (revenue, expenses, etc.) from a nonprofit’s form 990, but is more of a marketing tool. This marketing tool is an opportunity for a nonprofit to showcase its successes and progress from the past year. And, it’s a great way to communicate with stakeholders and keep them informed, create trust, and build connections.
Unlike a form 990, a great annual report relies heavily on design. An effective annual report, which inspires, educates, and connects with stakeholders needs to be designed well. Good design, like any great branding, can help capture the attention of readers and make the report more engaging.
In this article, we will discuss the elements of good annual report design, as well as some tips on how to create a successful one. So if you’re looking for ways to make your annual report stand out from the crowd, read on!
What is an Annual Report?
As previously mentioned, an annual report is a comprehensive report of a nonprofit’s activities throughout the preceding year. It not only covers financial operations and performance, but also highlights major accomplishments, impact, and more.
The content of an annual report may vary depending on the type of business or organization. Most nonprofits, though, usually include the following information in their annual reports:
- Cover photo/design
- Table of contents
- Message or letter from leadership
- Statement of mission and values
- Accomplishments
- Impact stories and testimonials
- Accurate financial data
- Volunteer and donor recognition
- Staff and board lists
- Future goals
- Contact page
Regardless of an organization’s mission, good design is essential for making sure your message is conveyed clearly and effectively. When done right, it can help tell the story behind your team and mission—turning readers into donors. Now, let’s dig into more of the specifics behind the benefits of good annual report design.
Benefits of Good Annual Report Design
Most nonprofits are too busy to consider the design of their annual report. But, by overlooking design, they can miss out on some huge marketing opportunities.
While the design has several benefits, most fall into the following categories:
Builds connection
Successful nonprofit work is all about building a connection between your organization and your stakeholders. A well-crafted annual report, with easy-to-read text, visuals, and more has the power to make stakeholders feel invested in your mission.
Strengthens brand identity
The nonprofit industry is crowded. Often, there are many organizations with similar missions and values, and even trying to target the same demographic of donors. One of the best ways to stand out is to strengthen the organization’s brand identity. Using fonts, colors, and more that match an organization’s brand has the power to reinforce brand recognition and build trust in that brand, which is essential for soliciting donations.
Educates
Nonprofit veterans know that educating stakeholders about the mission is essential. Donors that don’t understand your organization’s vision or progress aren’t likely to want to support your efforts. On the other hand, organizations that clearly communicate the issues your organization is trying to solve have a better chance of attracting support.
Inspires
Great annual reports inspire action. Through well-designed calls-to-action or visual storytelling, a well-design annual report inspires readers to get involved. Whether signing up to volunteer, partner or donate, a great design helps influence action.
Fosters reader engagement
No one wants to read an annual report that looks like a test book. Long, dense paragraphs and few visuals will immediately disinterest supporters. A well-designed report, on the other hand, keeps readers engaged and excited to turn the page. Or, when it comes to digital reports, keep scrolling!
Turns readers into donors
Above all, an eye-catching annual report has the power to turn readers into donors. By creating trust, inspiring action, and building connection through visuals, any organization can turn their readers into lifelong supporters.
In summary, a good annual report design is essential for conveying your message effectively and engaging with stakeholders. With thoughtful planning and careful attention to detail, you can create an annual report that is an effective marketing tool.
Elements of Good Annual Report Design
Though every nonprofit annual report is different, there are a few key design elements that every organization should keep in mind.
Elements of good design include careful typography choices, strategic use of brand colors, and visuals such as charts, graphs, and videos. Utilizing these elements in combination with clean layouts can help draw attention to key messages without overwhelming the reader.
Now, let’s explore, in-depth, some of these critical elements.
Colors and typography
Example of great typography and brand colors in an an annual report
Bright colors can be a great way to add energy and life to your annual report design. By choosing vivid hues like red, orange, yellow, and green, you can instantly attract viewers’ attention and create an eye-catching visual experience. Additionally, bright colors can help draw attention to specific areas of the report and guide the eye toward important messages.
When selecting colors for your report, it’s important to keep in mind how they will interact with one another. Aim for a color scheme that creates contrast while still maintaining a harmonious look overall. If you have multiple sections or topics within your report, consider using different shades of the same color family to differentiate them from each other. With careful planning and a bit of creativity, you can use bright colors to make any annual report design stand out from the crowd.
For organizations that have an established style guide, it’s important to utilize those fonts and colors throughout. This will help reinforce brand identity while visually engaging readers.
Data visualization
Example of data visualization in an annual report
Nonprofits dread creating the financial overview section of their annual report. Because this section includes so much data, it can be hard to know how best to design the results for easy reading. That’s where data visualization comes in.
Data visualization includes turning confusing statistics from your organization into Pie charts, graphs, and v. Each of these methods allows organizations top present complex information clearly and concisely, allowing readers to quickly understand the story behind the numbers.
Of course, when incorporating visual elements into your report, be sure to choose those that are appropriate for the data you’re presenting. For example, if you’re displaying numerical data, a chart or graph might be the most effective choice. On the other hand, if you’re conveying more qualitative information, an image or illustration may be better suited for your purposes.
When creating a chart or graph, be sure to keep these few tips in mind:
Colors
As we explored earlier, color selection is essential to connecting with readers. When it comes to data visualization much is the same. When creating your graphic or chat, choose colors that are visually appealing and easy to distinguish from one another.
Simplicity
When creating this part of your annual report, make sure not to overcrowd the chart with too much data or categories – this can make it difficult for viewers to interpret the information properly.
Or, consider grouping related categories together and displaying them as one slice. And, provide clear labeling for each data point and include descriptions of any relevant trends or patterns that may emerge from your analysis. Doing so will help simplify your chart and make it easier for viewers to understand.
Clickable content
Lastly, great annual reports allow the reader to feel in control. By making your annual report an interactive one, with clickable elements, readers will be able to navigate your data easily.
Video and photography
Beneficiary testimonial example from an annual report
Regardless of mission or accomplishments, all great annual reports include video and photography. Both have the power to create an emotional connection with readers which is essential for nonprofit success.
Before we dive into best practices for including video and photography, let’s take a look at some examples of what a nonprofit might include in its annual report:
- Photos/video testimonials from beneficiaries
- Photos/videos of staff
- Photos of donors of key stakeholders
- Photos/videos of volunteers
- Photos/videos of events
Including videos or photos in your annual report is a great way to showcase your qualitative data. Whether using stock imagery or real photos or using repurposed video or original video, the inclusion of both is essential.
Stock photos vs real photos
Example of stock imagery in an annual report
When determining which photos to include in your annual report, it’s important to consider whether stock imagery or real imagery is right for you.
Stock Images
Stock images can be a great asset for annual report design. Not only do stock photos provide a professional, polished look to your report, but they also save time and money compared to hiring a photographer.
When choosing stock photos for your report, make sure to select ones that are high-quality and relevant to the content of your report. Additionally, ensure that the photos fit in with the overall design aesthetic – if you’re going for a modern look, choose modern-style photos; if you’re going for an organic feel, pick naturalistic images.
Real images
For nonprofits that have professional photos on hand, real imagery is essential to include. Photographs of various stakeholders, events, etc. can help reinforce brand identity, create trust, and foster transparency. Plus, when using real images of beneficiaries or communities impacted by your work, you’ll have. A better chance of creating an emotional connection.
So while neither image solution is wrong it’s important to cinder the benefits of both.
How to Design a Great Annual Report
Designing an effective annual report can be a challenge, but with the right tips and tricks, it doesn’t have to be. Here are some key points to keep in mind when designing your next report:
- Begin by gathering all relevant data and information you want to include in the report. It is important to have accurate, up-to-date information in order for your annual report to be effective.
- Next, decide on the overall theme of the report – think about colors, fonts, and images that will help create a unified brand identity throughout your report.
- Utilize visuals whenever possible; pie charts, graphs, and other visuals help make complex data easier to understand and digest.
- Finally, keep it concise – don’t ramble or get too wordy; use clear language that is easy for readers to understand at a glance.
By following these tips for good annual report design you can ensure that your organization’s next report stands out from the crowd!
Designing a great annual report takes time and effort, but with the right planning and creative touches it can be an effective way to communicate your organization’s successes and plans for the future.
Best Practices for Designing Your Report
Use nonprofit-first software solutions
Lots of nonprofits struggle to create their annual reports because few digital solutions provide the right tools to make it easy.
Easy-to-use digital report software with drag-and-drop editors, templates, and more make the annual report design process a breeze. Instead of toggling back and forth between Canva and Adobe, or hiring a graphic designer, use software that’s an all-in-one solution.
Include clickable content
One of the most important parts of a successful annual report is the inclusion of clickable content. Clickable content includes:
- Custom donation buttons
- Links to further reading
- Newsletter sign-up buttons
- Volunteer sign-up buttons
- Social media icons
An interactive, digital report that includes these elements will excite readers, and encourage them to take action.
Recycle old content
Don’t have the time to create new content for your annual report? Here are a few examples of content you can reuse in your annual report:
- Social media videos
- Event photos
- social media posts from the year.
- Webinars
- Lectures
- Podcasts
Embedding this old content into your report can save time and money in the long run.
Prioritize scannability
Readers should never feel bogged down by the information included. In order to avoid this, nonprofits should design their annual report with bolded text, blocked text, and more. By using annual report templates, nonprofits can easily design their information for optimal readership.
Wrapping it up
Great design is crucial to the effectiveness of an annual report. If done thoughtfully and strategically, nonprofits have the opportunity to create connections, inspire action, and turn readers into donors.
By using all-in-one software like Yearly, nonprofits can take the stress out of designing, editing, and publishing their annual report. Get started for free with their 14-day trial.